June 16, 2017
COMMITTEE FOR A RESPONSIBLE BUDGET TAX REFORM ANALYSIS INCLUDES IRRESPONSIBLE REVENUE PROPOSALS
WASHINGTON, DC – Yesterday, the Committee for a Responsible Budget released a set of options it identified as helping to raise revenue to support tax reform, including slowing or repealing accelerated depreciation. Kevin Dempsey, Senior Vice President for Public Policy at the American Iron and Steel Institute and spokesman for the CRANE Coalition, issued the following statement in response to the CFRB analysis:
“The CFRB budget proposals to slow or repeal accelerated depreciation are simply not fiscally responsible.
“Experts agree that repealing or slowing accelerated depreciation to pay for tax reform would produce a temporary, unsustainable boost in revenue, leading to budget shortfalls down the road – budget shortfalls that would require new tax increases to address. Capital-intensive businesses in the U.S. could end up with neither accelerated depreciation nor more-competitive tax rates.
“The CFRB proposal also misses the mark on supporting tax reform that drives economic growth. The evidence is clear that rapid cost recovery drives economic growth by supporting critical domestic investment. Eliminate or slow cost recovery and you undercut the very purpose of business tax reform.
“Tax reform failed in Congress a few years ago when a draft tax reform measure in the House included the near-elimination of accelerated depreciation. Such a proposal shouldn’t be considered a serious proposal for pro-growth economic reform now.”
The CRANE Coalition is made up of American companies and associations focused on preserving accelerated depreciation to provide the capital needed to continue driving America’s economic growth and job creation here at home.